Consumer Payment Card News

Kardashian Contract

Remember that credit card the Kardashians were promoting some weeks back? Remember how they backed out of the promo deal after Connecticut Attorney General Richard Blumenthal initiated his investigation on the card and the Kardashians backed out, thus killing the card? Well now they’re being sued subsequent to the abrupt pullout for something to the tune of $75 million dollars. The Kardashian Sisters launched the debit card November 10th with much fanfare. Having allegedly signed a two-year promotional agreement for the “Kardashian Kard,” the Revenue Resource Group is now claiming the sisters have a contractual obligation to continue their part in marketing the ‘Kard.’ In keeping with its name, the Revenue Resource Group came up with the card deal, exorbitant fee structure and lost streams of revenue on the “Kardashian Kard.” Having been referred to as “predatory,” the “Kard’s” ‘gotchas’ include plan options, which gave you the option to either sign up for a six month plan for $59.95 or a 12 month plan for $99.95, the former of which covered the $9.95 purchase fee, $5 minimum deposit, and the $7.95 monthly fee for the duration of the plan while the 12 month plan is identical except it included the $7.95 monthly fee for the full year. After the initial six or 12 month purchase period for the Kardashian Kard expires, you were required to pay a $7.95 monthly fee for as long you use the card while cancelling it would cost you another $6 fee; you were subject to a $1.50 fee for withdrawing funds at an ATM on top of the ATM surcharge; a $1 fee if ATM or POS transactions are declined; a $1 fee to check balances at ATMs; a $1.50 fee to speak by phone to a customer service representative; $9.95 to replace a lost or stolen card; and if you contact the card issuer about a lost or stolen debit card within two business days, your liability is limited to up to $50 (or up to $500 if the consumer reports the debit card lost or stolen after two business days). Now the Group wants to be compensated for the breach of contract, but i wouldn’t worry about the ‘Sisters’ too much; now matter what happens I’m sure they’ll bounce back.

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